2006 - Interparfums

3.7
Marketable securities and fixed securities
In € thousands 12/31/05 12/31/06
Equities 210 311
Total fixed securities (marked to market) 210 311
Certificates of deposit 16,300 22,100
Money-market mutual funds 18,585 21,567
Gross value of marketable securities (marked to market) 34,885 43,667
Gross value of securities portfolio (marked to market) 35,095 43,978
Allowances - -
Net value of securities portfolio (marked to market) 35,095 43,978
Listed securities 210 311
Unlisted securities 34,885 43,667
3.8
Net cash
Highlights of the consolidated statement:
■ cash flows from operating activities reflecting an optimal management of trade receivables and payables and changes
in inventories reflecting launches and sales growth of the period,
■ cash flows from investing activities that included the purchase of molds and tooling for product launches of the year as well
as an additional license fee paid to Burberry,
■ cash flows from financing activities including an annual repayment of a medium term loan to finance the upfront license fee
in connection with the Lanvin acquisition and the payment of the dividend for fiscal 2005.
Pursuant to these items, the net cash position was €44 million at December 31, 2006.
3.9
Shareholders’ equity
3.9.1 Common stock
As of December 31, 2006, Inter Parfums’ capital was composed of 10,881,080 shares with a par value of €3, 71.6%-held
by Inter Parfums Holding.
For the period under review, capital increases result from the exercise of stock options and the capital increase in connection
with the bonus issue of 15 June, 2006 on the basis of one new share for every 10 shares held.
3.9.2 Stock option plans
Since 1994, the managers and employees of Inter Parfums and its subsidiaries benefit regularly from stock option plans.
At the beginning of June 2006, a new stock option plan was set up for Inter Parfums employees providing for 98,800 stock
options with an exercise price of €35. These options are subject to a vesting period of four years.
At 2006 year-end, outstanding stock options broke down as follows:
Plans Subscription Grant date Vesting Options
price (1) period outstanding as of
December 31, 2006
Plan 2000 13.80 03/24/00 5 years 33,028
Plan 2001 19.30 04/27/01 4 years 64,455
Plan 2002 11.10 08/26/02 4 years 80,203
Plan 2003 18.30 08/26/03 4 years 83,248
Plan 2004 26.70 03/25/04 4 years 112,100
Plan 2005 25.00 05/26/05 4 years 134,673
Plan 2006 31.81 06/01/06 4 years 107,800
Potential number of new shares 615,507
(1) Subscription price adjusted for bonus issues
Benefits granted to employees in the form of stock options recognized as additional compensation, in accordance with IFRS2,
were calculated using the Black & Scholes model. The impact of this calculation represented a pre-tax charge of €580,000
as of December 31, 2006 and €365,000 as of December 31, 2005.
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